Question

ales data for a line of tires it deals. m. (20) JR Tire Store reported the following October purchases and sales date he company uses a perpetual inventory system. 1) Prepare the company's inventory record using LIFO. se month. 3). Journalize the transactions 2) Identify cost of goods sold for the month and the profit of the month...... on October 18 and 26. Date Item Quantity (Units) Unit Price Oct. 1 Beginning Inventory $68 90 67 7 Sales 18 Purchase 26 Sales 91 IV. (40') Journalize the following transactions according to the descriptions and requirements: 1. In March, Smith Co. completed the following transactions: July 1 Received $10,000 contribution from Bill Alone in exchange for capital. Paid utilities expense of $400. 12 Purchased equipment on account, $2,400. 21 The owner, Bill Alone, withdrew $500 cash from the business. 27 Performed services for a client on account, $3,400. Journalize each of the above transactions. 2. KOOL Co. purchases and installs a machine on Jan. 1, 2013 at a cost of $109,000. St

Answer 1

Part 3

Date	Purchases			Sales			Balance
	Units	Unit Cost	Total	Units	Unit Cost	Total	Units	Unit Cost	Total
Oct-01							10	68	680
							2	65	130
Oct-07				2	65	130	4	68	272
				6	68	408
Oct-18	4	67	268				4	68	272
							4	67	268
Oct-26				4	67	268
				1	68	68
	Cost of Goods Sold					874
Calculation of Gross Profit using the LIFO Method
Sales Revenue:
Oct7 - 8 units @ $90 per unit	720
Oct 26 - 5 units @ $91 per unit	455	1175
Less: Cost of goods sold		874
Gross Profit		301

Date	Particulars	Debit	Credit
Oct-18	Inventory	268
	Accounts Payable		268
	( Being inventory purchased)
Oct-26	Accounts Receivable	455
	Inventory		455
	( Being inventory sold)

Part 4

Date	Particulars	Debit	Credit
Jul-01	Cash	10000
	Capital account- Bill Alone		10000
	( Being contribution received)
Jul-05	Utilities Expense	400
	Cash		400
	( Being utilities expenses paid)
Jul-12	Equipment	2400
	Accounts Payable		2400
	( Being equipment purchased on account)
Jul-21	Capital account -Bill alone	500
	Cash		500
	( Being cash withdrawn by bill)
Jul-27	Accounts Receivable	3400
	Sale of service		3400
	( Being services sold on account)